Xerox Dives 8.67% Intraday, 18.30% in Seven Days on Tariff Ruling, Macroeconomic Pressures

Xerox Holdings Corporation (NYSE: XRX) hit a record low on October 10, 2025, with an intraday drop of 8.67%, extending a seven-day losing streak that saw the stock fall 18.30% in total. The sharp decline reflects a confluence of institutional selling, bearish options activity, and macroeconomic headwinds, as investors grapple with uncertainty over the company’s strategic direction and broader market pressures.

Institutional investors have been a mixed force for XRX, with heavyweights like Barclays PLC and Mitsubishi UFJ Trust & Banking Corp reducing stakes in late August and July, signaling waning confidence. Meanwhile, smaller players such as Counterpoint Mutual Funds LLC and Sound Income Strategies LLC added modest positions, but these inflows failed to offset the outflows. The sell-off accelerated in October, coinciding with a federal court ruling that invalidated most of former President Trump’s tariffs, spooking markets and triggering a 4.4% drop in XRX shares on October 10.

Options trading data further underscores investor pessimism. Put options on XRX surged in volume during late September, with traders hedging against further declines as Treasury yields climbed above 4.2% for the 10-year bond. This trend aligns with broader market jitters, as growth stocks like XRX face pressure from rising borrowing costs. Analysts have also turned cautious, with Credit Suisse and Morgan Stanley maintaining “underperform” ratings despite XRX’s recent foray into AI-driven document technology and a partnership with PEAC Solutions to expand financial services offerings.

While XRX’s Q2 2024 earnings exceeded expectations, subsequent revisions and downgrades have clouded its outlook. Zacks Research cut its earnings estimates in August, and mixed reactions to the company’s inkjet reentry with the IJP900 Press in June highlight execution risks in its digital transformation. With the S&P 500 and Nasdaq underperforming in late September, XRX’s exposure to volatile sectors like technology and industrials has amplified its vulnerability. Investors now weigh whether the company can sustain its pivot toward AI and digital services or if structural challenges will persist amid a shifting macroeconomic landscape.